Saturday, November 17, 2018

What is an Angel Investor?


As the president of NZ Consulting and a raffle director for numerous organizations in California, Neal Martin Zeavy has raised more than $100 million on behalf of various charities throughout the United States. Neal Martin Zeavy also serves as the president of Zeavy Development and as a co-owner and an angel investor in Nic’s Organic Fast Food in Chicago.

Angel investors provide a one-time investment that helps companies get through their beginning stages and provides entrepreneurs with a source of equity financing. When angel investors give money to a business, they receive a certain amount of equity in the company, which will give them increasingly larger returns as the company becomes successful.

Although angel investors get money back in the form of equity, they do not make investments solely for profit. They believe in helping entrepreneurs succeed and often invest in the entrepreneur rather than in a particular business. 

Angel investors look for particular qualities in the entrepreneur instead of examining company profits. However, angel investors make sure the company idea is viable, and they determine whether the entrepreneur has created a good business plan and valued the company appropriately.

Since their primary focus is helping entrepreneurs succeed, angel investors are often family members and friends of the entrepreneur. On average, they invest $25,000 to $100,000. 

Contrary to popular belief, most angel investors are not millionaires. Many are lawyers, doctors, and other professionals.